Magnite (MGNI) 22 Feb 232022 Q4 Earnings call transcript

Good day, and welcome to the Magnite Fourth Quarter 2022 Conference Call. [Operator Instructions].

I would now like to turn the conference over to Nick Kormeluk, Investor Relations. Please go ahead.

Thank you, operator, and good afternoon, everyone. Quarter Conference Fourth Magnite's to XXXX Call. Earnings Welcome

call recorded. a reminder, being conference this As is

on call like me slides today's Day, that Joining presentation. the have on our and Barrett, we website CFO. David our CEO; Investor I to financial would posted to Relations out today point highlight are accompany Michael

on future not Before current cause subject remarks might reflect questions but to results our information and factors that to, achievements and projected or performance. risks, be to to statements from statements, views known These started, of by materially to and limited future will strategic statements. results, or and will actual They forward-looking to may and are the business. potential are you remind our that performance assumptions I get be other impacts concerning factors answers different we forward-looking that unknown of prepared estimates be considered respect guarantees anticipated or based macroeconomic performance our uncertainties statements and our our not including with events include on implied including, and financial objectives, expectations

the uncertainties with annual A statements relevant other of and obligation update forth reports no Form to XX-K. assumptions on risks. the forward-looking report or periodic risks, these set is in SEC, discussion including XXXX company's filed and our We undertake

deck revenue posted traffic in reported release ex-TAC, Investor Our website. our is and commentary costs, earnings less be metrics GAAP including share. EBITDA include financial in can the found or income our non-GAAP measures, will results per and between highlights and press Reconciliations that today financial non-GAAP on Relations adjusted acquisition our non-GAAP for

periodic I metrics. be dynamics replay our may our today's future may to the response in questions, this update At press in the Relations of may website or provide Please provide our to an times, nature, encourage your reports not Magnite. these greater access call may additional more we Investor business. deck, visit webcast you be the about insights detail on into onetime SEC that and highlights and to offer incremental learn financial to advised of of we release, metrics to

now please I ahead. turn call Michael. over to will the go Michael,

revenue Nick. you, finish Thank to strong Total margin also to we year, that of our the a XX%. ranges. end coming We exceeding And achieved $XXX targets. QX $XXX million in at and in cash the million, had free revenue XX%, revenue report year, for up Adjusted ex-TAC our came strong ex-TAC both DV+ high with I'm EBITDA X%. up up was in of XX% of happy guidance TTV the full at flow

in into environment began Our ad outlook in positive late the overall QX. despite on spend weakness QX that and continued is XXXX

We are at on stability QX detail and our cautiously financial these will currently greater outlook. and are seeing levels provide optimistic. results our David

industry recent with growth and we Our continued of based top the CTV industry our which growth to year-over-year, XX% QX customer trends. on line revenue believe in business ex-TAC drive outpaced feedback

OTT couple we SpotX. the a CTV next-generation ago, features, Just best Magnite weeks and and for and platform, of our Magnite Streaming, technology announced functionality merging

also more linear OTT to inventory, media to inventory, capabilities and live effectively VOD access maximize to unparalleled reporting. in CTV advertisers providing yield real-time and holistically while and advertising insights their provides owners environments, and grow Magnite empowers across addressable OTT It with Streaming CTV audience-targeting businesses.

fuboTV, but with Disney. call to and, We are to announced. further new CTV partnerships, least, Media, partners highlight about definitely expanding those traction in Criteo last since our addition and Horizon are and last new like expanded relationships Brightcove, previously Key excited I'd not our

SSP programmatic renewed and in like that the Disney's highlight our I'd late January expanded global we to agreement partner. news First, as

As our with with relationship started you recall, may Hulu. them

We Disney of properties. since relationship to grown portfolio have full the include the

January, of of to and targeting say in be a available data that tech will and in Retiro suite lot showcase, articles about had on Disney's their Digi annual Day Disney+ full ahead a July. In by variety

thrilled be a with to of platform audience Select support XXX Disney leverage capabilities, in their which targeting are household first-party level We partner ideas. Disney data more than with the U.S. and million

to advertising technology leader in Brightcove them Brightcove, businesses, footprint, with Second, to rates helping customer opportunity advertising and Magnite for will and improve a publishing Magnite's platform a across significant their partners. utilizing global help better capabilities. Brightcove monetize solutions, delivery secure the their fill increase streaming revenue to saw power customers

the and to insight strategic customers better publishers Brightcove content. video to SpringServe integrate will their server provide transparency ad into supply, available opportunity for monetize control, ad also a with greater providing

We how our also This biggest relationships win choosing our client on had for deepen with SpringServe our expand to comes business. and illustrate implement partners. just strategic fubo, ad server video to to their ad server our another is and with expansion entire important

the largest most yet opportunities in of one is and sports Live valuable CTV. complex

continue a make priority. We to this

as streaming Our success like LSA, build provides such fubo. with platform opportunities our leading partner products, to significant sports-first or a Live Sports Acceleration, Bingewatcher on and live TV

and massive for ad opportunity tremendous engagement, adherence by sports spikes requiring to to make in our is huge. need live CTV rules, The and attractive fill flats extremely publishers. in and time, needed coupled while viewership capabilities real The creation complex with and

on recently in to and to CTV dollars rights leagues. from see looking across ad We on world sports great are in a for our having future opportunity, sports Linear. capitalize significant, chasing the streaming, success and we'll sports most sports separated are of streaming live Magnite all look this The build leagues and

publishers help Increasingly, side. are a both big Retail Criteo for highlight in us. retailers progress and Recent this are identities they to supply very Kroger on of looking activate our are by user and opportunity and SSP initiatives another for being trusted partner Networks area. audiences protected the Media securely

to off-site drive CTV environments, CTV leverage collaboration, Magnite. thrilled XXX audiences space, are audience to retail closed-loop can leader is attractive to agency announced partners This the CTV. their partners their Through their expand and will addressable providing that turn, measurement Criteo's partners. through quarter, retailers we very enable we retail industry reach and into help the an extending in brand by Criteo in preferred and media relationship global growth retail

on path one we make continue announced SPO, largest deal optimization, or Media, U.S. addition, a to the supply progress of Horizon and In multiyear media SPO agencies. with

and see GroupM, We strong to also LG. continue FOX, with partnerships with announced traction previously VIZIO

GroupM specifically to and our status relationships will like which XXXX. I'd nicely Fox, the in with contribute believe we discuss of

premium more move next to presents with of launched GroupM season which marketplace, launching phase a OLV and come. accounts is Our continuing scale, into into GroupM upfronts. partnership CTV is gaining with additional XXXX expansion The opportunity. as has new successfully we XX-plus momentum preferred to an the GroupM

pleased across leading progress and as sports now where successful, of of very also video the The GroupM the We is entertainment, is to power part partner OneFOX the the our relationship, streaming news are we premium company's marketplace. a for Fox SSP inventory programmatic very also with launch serve portfolio. it campaigns and

environment. On builds in revenue X% side, grew spite spend progress the we tough growth DV+ ad ex-TAC a year-over-year. on of This QX

since improvements year. massive continued Our and success to and win added last monetize our volume to impressions buyers the we've find is focus to to on customer-based assist additional publishers of attributable

has as recent reaches The Magnet approximately Manager selected screen, using chosen an Manager; which Demand preferred has tech-powered partner; the includes Men's Speed, million which Illustrated, such Magnite's and media Manager. its wins the seen Arena include Media Prad, Demand Trusted Journal of Some company, as worldwide and examples solution onboarding XXX Bud in Group, pubs, PMP consumers premier brands, Sports early CPM and who of a is than more when Street, customer X% lift across every Demand stages

EMX and the shuttering SSP Yahoo! like I'd SSPs address bankruptcy business. closing, regarding to two declaring recent In news the their exiting space,

concluded couldn't for Some SSP have that might industry be of the the pundits disagree beginning We more. the industry. this end

of beginning What of the we're seeing SSP, undifferentiated the but of the death now the end isn't SSP. the

years, the DSP has little offer recirculated technology little For more a of the borne to with than and demand. weight innovative SSPs raft of market

from cookies team for Demand facilitation to header; global at get been range essential ad phased the help that audience Magnite, SpringServe demand serving; investing proprietary technologies. and third-party are RMP and of Carbon CTV delivers publishers scale. back Meanwhile, a has as sell-side demand to the in control Manager, a most out; addressability of take

best digital out-of-home. in sell-side management no and with is Add audio, tools all for extremely we technology dedicated underlines that The to every today the hard of to the curve. better hard help technology build for the maintain it's stay this of the are tech keep than media and OLV, enough a sell-side we up Yahoo! and native to display, can industry's yield publishers have for owners thrive Indeed, and decision ad any what that type, to future. CTV, it's including size evolutions. meeting known, stream ahead stack companies company positioned But endless long

that accelerates, to lines; buyers offline; as select to of all stands third, indispensable SPO gain SSPs platforms where first, several complex their and meet spend path sellers Magnite go list supply their in additional a and to most of differentiated, likely competitive a migrate as partner consolidate recipient second, of when ad that's the bolster As bottom criteria. ways: spend as on

Well, side. that How consolidation the to seen does DSP this very end on industry? similar the SSP for winner-take-most we've the

poised to SSP Magnite victor. in innings is late are winner-take-most We of the consolidation, and that be

call David. the With that, over turn I'll to

Michael. Thanks, Great.

and record Magnite. We year are another pleased quarter for to strong report

Our EBITDA results strong $XX ex-TAC at expectations, fourth the a of XX%. quarter million adjusted for were high our end of revenue generated and of margin

strong operating $XX business continues generate Our for flow to of million cash quarter. the producing model flow, cash

ex-TAC year revenue full we of approached XXXX, total the For $X.X $XXX and spend reported billion. million ad

million, sequential in QX, seasonal Revenue XX% DV+ full $XXX or for of of QX ex-TAC last was an year. for $XXX million attributable ex-TAC XX% XX%. compared QX basis, was from $XX year-over-year margin generated million, line QX adjusted X% from $XXX historical up revenue of year to from year. with last XXXX. Total also ex-TAC Revenue increase a over patterns. million. million, to XX% was EBITDA total revenue up $XX $XX grew of was generally We CTV million, On XX% QX a ex-TAC up revenue

and and spend verticals, retail, such of ex-TAC less offsetting and for weakness Verticals, growth health as than top in resilient food and the revenue proved Political our and were quarter. represented beverage, fitness. technology travel X% automotive, our

XX% XX% mobile XX% for Our and QX mix CTV, desktop. revenue was ex-TAC

CTV of same new Adjusted Total was expense quarter were which due partially expenses, $XXX million ago. revenue period due XX% $XXX up cloud EBITDA to million our compared guidance million, and increases expenses, the million fourth in XX% the software last to year from platform. from driven a quarter, fourth personnel QX to internally engineering for $XX $XX cost slightly lower to expenses, up includes increased operating year operating range. the of The and by capitalized team higher higher T&E the completion from and our above and developed sequentially

was Net XXXX quarter. was period $XX year we the due quarter of was Note a million year. million. revenue last to income million last XX% the versus EBITDA Adjusted the to for $XX $X.X was Net million same Adjusted of loss $XX margin adjusted EBITDA largely for our above. percentage was EBITDA XX% as items for fourth margin ex-TAC. mentioned cost compared that calculate --

share per of reported GAAP per Non-GAAP to year. fourth compared share diluted in and of quarter for earnings the $X.XX fourth breakeven was $X.XX last quarter loss a to was the for $X.XX fourth XXXX the quarter result compared in XXXX basic XXXX.

our our expense to a per impact GAAP for related the a This The included had loss this income press million non-GAAP income consolidation. and expense release. share platform share non-GAAP per and reconciliations to Our in quarter results are results of negative per CTV QX. amortization -- with in on QX of impact share included $XX noncash income non-GAAP $X.XX on accelerated negative $X.XX

quarter. non-GAAP QX We shares $X amortization for shares additional $XX average $XX for and XXXX. XXX million were Fully outstanding million the utilized weighted fourth quarter expect QX, million in in weighted per average earnings There were for share million basic of expense of the to in QX fourth XXXX. diluted diluted recognize and accelerated XXX million of

Operating equipment million including the for for which million CapEx, costs, expenditures, the cash quarter. was million development and define the flow, $X EBITDA property internal better than capitalized were of purchases year, for we both CapEx of use Capital for expectations. and software as less our $XX $XX total adjusted quarter,

$XX the net Our At cash expense to million. XX% the end from $X grew was up for on sheet million, QX, of interest balance quarter or the $XXX million QX.

debt. Moving on to

of further reduce This We net ultimate Xx demonstrates of the at our continue or approximately progress QX which X.Xx QX. of ratio, leverage to compared as the less. end to our end was target towards X.Xx at

new program, of We shares the Board this through a during of repurchase did program to convertible under Under the company which not repurchase our in prior share approved our million program. replaces authorized XX new our any Earlier buyback repurchase February total shares debt month, is QX. a and XXXX. common plan,

we addition although we carry. in more to future. cash a have cash what share over plan the compared position carry cash to out reduction not year, at that, to We to flow in are prudent is in the also strong XXXX. might we give ruling repurchases we said, free a the normally priority near balance capacity the debt That term, it expect and sheet In repurchases end share generate higher of significant on to believe the currently, the

our the view I'll for now share our and first quarter for year. expectations the

economic environment. approach challenged to a guidance continued Our assumes

quarter, be $XXX of the expect the ex-TAC to in million $XXX For to range we first revenue million.

ex-TAC be attributable of to of million in start million. industry-wide to This $XX.X an range is revenue the growth to expect CTV to slow $XX.X attributable QX. to We slowing

We million expect million, approximately QX to midpoint. up XX% the expenses $XX margin tick adjusted $XX to implies EBITDA EBITDA for slightly adjusted of which from operating QX at to

XXXX, revenue grow to last year weakening despite the ex-TAC, to we spend expect full ad global economy the For call. continue since and our

cautiously from partners, improve, perspective the industry will CTV both earlier. an growth We are from new and expanded Michael and optimistic covered that

our focus majority platforms. engineering reduction which two managing approximately eliminated our We across force, in from X% on positions CTV with continue to duplicative costs our January workforce. roles were of The of impacted

gains EBITDA will expect improving elevated one support half the migrations optimize. stronger half margins continue will with largest the we We which second half. a to platform, year in lower with significantly in OpEx to compared coupled the year, throughout expenses as client in the of seasonally second the to adjusted be line, first the complete unified and result we This, streaming top in Magnite

rate expect be in long-term margins at back target As XX% run a XX% to we EBITDA of our to exit with adjusted we the XXXX, in range. line

will million our expect year CapEx or XXXX. also be that for We $XX full less

year, the specific be EBITDA are adjusted not XXXX. providing approximately full adjusted as the guidance, while For we to same targeting we EBITDA are

million We also expect $XXX this cash free year. flow to exceed

QX finish strong brought Magnite CTV in a and leader a for DV+. as

strong the year and margin flow to very pleased grow and the our enter accelerating position are our We business, with generate support as recovers. we growth coming as economy cash expansion

With open the that, let's Q&A. for line

Instructions]. [Operator

Shyam Patil Susquehanna. from with comes question First

Nice I job on couple the a had execution. questions. of

for you seems spend terms as you've question, slow things changes bit of February? growth late off improvement January if in the wondering First rates industry from as early in ad any the XQ, I gone it just guys like have to or of for talked seen kind was about it, a we've started growth.

just, your just you about kind how especially can SSP of overall a bit relationship large And was talked you out that industry, then about then SPO stuff that And deepen. little to checking you Michael, I kind in share, not question, some you just the overall, players second just happened ability to kind talk agency year? of this and agencies? anything And feel side, and of a of the larger of from continue strength for curious, could a the your of that's meaningful couple the focus be CTV in gain with about more guys

Yes, in sure. to I'll chime start off or and allow Nick. David

concerned, I what been think there optimistic far hasn't as As are improvements cautiously further us has is decline.

late is to but as to into it, we and I the hoping seems better that of should that see freshen get upfront into it QX we're not out. the notion that especially say think with the and it that bottom bouncing say that big get and That's consensus worst, better and the overnight, QX from agencies, to the be our what think it to starting is here we we've I So probably talking we're seen time. QX buyers, and the -- along get period have marketers, things that

Google's and value SSP when platform, to every SSPs kind in shut of feel explosion as far as no the the first that to to along, that starting occurred on of said as this and that in starting finally where came happen we other And really script, hundreds you it's other bidding header of we the SSPs, they plugged find arbitrage down. OB recycle same DSP demand program, provided be that's that than side,

talking out. got are though, and have fine to marketer talking that they've they're of of. You need, and in And I really getting serious the to it about are and agencies because fly-by-night that they -- we're the brands talking and feeling tools not willing SPO you've I'm that about with it, invest they the We're a everything about willing as handful guys SSPs about you're agency got and build. heard

see sentiment value and And think as to there's don't are I this SSP I you're than anyone of we So in change think renaissance we starting advantage take the that the of better positioned Magnite. at to of the said the call, in ecosystem.

question comes next with Zangler Our Stephens. from Nick

a looks Taking I faster actually, And than again, XQ DV+ like in guiding you're at at would think, though, quarter. 'XX guide, think quarter. it be Great the midpoint. CTV CTV, growing up then look X% the I that

if just do mobile And then could on curious out the perspective? direction some given is think segments now? fluctuating we're from CTV, you thought general still Just CTV I trends across seeing lead a desktop to year, like mobile and like growth a was if further into mean, going the looks any bit? that right out just I'm you It we push new strong is -- flesh the that So as last maybe continues and quarter. year. for

year, I record broken about, is it -- been eye you've a "Hey, the we We're sound Listen, we're DV+ to like -- a think, kind well, We're that green shoots. I our seeing the Nick. the -- we on us listening of took hard. for Sure, and think back off working ball. Yes. success,

You may them just see yet." not in financial the results

kind of you're and what that's it's expense at the others. Well, seeing, of coming

matter get where doing think in environment feel job a depressed so still catch-up it. we DV+. at that great to job and playing in a see ad of to have a to we difference kind this we're of be you And fact. DV+ go good I quite we that the doing a as ways is should on Team's But

macro, XXX% It's we world. fastest-growing were the XXXX. domain to budgets branding-oriented, and are question performance-related is opposed exit segment of DV+ always CTV were the first just that the more there's to be CTV advertising, that will as as no get that typically more which the is paused TV-oriented

I it given back well across connected the on, with take nature, universal with so growth that the place too, are full We turned and see seat of it's think in industry economy our in and this that as And -- we the in gets are every landscape happening to terms nature, growth. what's when outpacing all our world, publisher. in the CTV But partnerships incredibly we we advantage. the positioned obviously, have in exactly so, macro in improves,

and thing being on a growth dollars. would bit little only that DV+, the The dollar the is I by masked even thing which one is would the add -- I strength in strong add --

you for is compensate So X%. DV+ that, closer to that if growth

progress there. So we're we making with are that thrilled the

these I to -- all seems And shopper touch digital in just on want days. there. then rage marketing to be advertising Got Congrats it. did the

of CAD remind utilizing listened feedback strong adoption Trade with relationship data advertisers new and here? they I -- closed-loop you to of point us role justify ad to Just pains can with you Desk, to I have relationship mean retailer know your you Criteo. a spend. a

I us, a guys? you marketing? remind generating to of is guess, just yet out Magnite currently incremental to is this whether exposure, you can Or tailwind that's revenues your if attributable current play shopper But for

Yes. Nick, the more I think latter to yet it's out. play

Kroger, We have the relationship with relationship. that nascent Criteo

partner the role shopper about networks the retail our ecosystem dollars think supply. of is of the the So media or in

folks does, or And so a Kroger are segments would the And actual audiences what more data and and that protected closer, Kroger trying more right? side SSP more, publisher. the And more in to inventory supply case, feeling open off-site whether assembling this have to this the that's the a an operated web, across from valuable comfortable data assembling be and publisher owned keep first-party that's the Kroger. the audience on to it reach

up not I It's a And with you're play proprietary role. to closed-loop see own role. technology, technology. an anytime don't think be so I think going us trying soon valuable very end-to-end we'll come to attribution our going to

think I RMM we'll space. our is. of It's what the and economics role, role in the know valuable participate a we

next question Needham. with from Our Martin comes Laura

time bigger Great Retail smaller big line one different numbers. has call. are prior CTV just view, Two, inherently market? Media as following total addressable of the point on that could be Michael, as or Like your contributor total up addressable those top that to than Networks been? growth other? Or Is market is a over the

other is And the my Google-DOJ then litigation. question on

Our the us to server. Google that D.C. its tell very channel to in ad minimum, spin DOJ off tech wants force

ad the SSP would worlds, spin have to best want all they of tech. third-party ad most, And in off spun-off. the in them everything server and they Second have the

be -- how their interested for server and I'd you just off their us in their ad SSP? ad Magnite walk to they activities. upside from if the Could or forced Magnite benefits spin server or through those

me. running to We'll footprint, of right? in from incredibly of of Media Sure, -- right? CTV that most Network the CPG So it television, and see most the hear CPMs so so spend, whether Retail is Media to obviously, are used Yes, ads our Laura. on attractive. these advertisers more in Network -- form Good Retail higher the universe that's participate

the create still to to loop, on whomever with CTV supply. to need going buy partnering this great they're access side them want so And attribution they the help

increased service think and we the and spend, participate we rates the on perhaps that depending play so quite And And increased we where take in. ad possibly that CPMs that's in provide. role I increased come we

prospects very, very about of Media. Retail we're ongoing excited the So

the outside get work. done really ball, it. Department have in following willing of counsel terms litigation, in obviously, really of fact a It's that's opinions. it. -- a kind gentler And Google Obviously, out terms guys of like too, of counsel, of seen we reaches good industry what On part already than to crystal transparency, that we've to ourselves, Justice of have other is hard you experts, it kind to job Google to the

I think way themselves, all if only bodes out inventory And conflict has the that ad power a that the that not of it able they're better to all serving have for someone to figure the interest owns publishers. a across open web

And direction. so a I think it's heading in journey. It's multiyear the right

very these Unfortunately, and I generally be to we things are but obviously, to think we'll, close stand it, gain.

serving we've think from That's an side. success we really don't the television that connected I with our already an Google ever on see all. seen SpringServe where at area ad

that to open not that ago. may for have I see various starting X you're And existed crack so years think us

question Craig-Hallum. next comes Our from Jason Kreyer with

if since. quickly budget things Michael, pulling of back has have wanted visibility just be decelerated I or changed? pretty have it that? how on may visibility in mean color visibility. like much on stabilized just you things just now like I marketers into reaccelerating QX, ask sounds wanted to or kind the But budget some about Or

the of sometime right sooner right, and in for finish December, followed publisher right? Yes. QX, into I call, every across limped line mean finish stopped across QX talking do QX. earnings. the to headwinds like you're we QX our Jason. it's And kind And [indiscernible] it kind that around mid-December, behaving no universal of And around

a the be do, more amount comes quite the you generally tend willing orders know, of buyers bookings to speaking, to months. of of are a as bit Our features that's a demand couple We insight from x from Insertion the little market. those I'm next and spend have our over more team, facilitation And visibility, strong. agencies. of

the the And that so our what that this the leads crystal the I kind greater of folks again, with of us ball and than bouncing rhetoric, that we're respect. is But is begins second half recovery industry bottom which some than else's it the hoping, is along to are sooner think no in year. anyone believe, hope

low the CTV [indiscernible] Fair enough. curious new to already being takeaways platforms Maybe talking two We've platform. anything allow updated on important that... just the the half? if I'm first understand

Jason, entire your it don't but if it's did come line? that David, across know on question. connection, I I missed my

Jason, you're there. No. cutting out

If you could repeat it.

Okay.

Are good now? that. we about Sorry

Yes. Jason. much better It sounds now,

Okay.

Sorry about that.

the So Magnite the on two streaming platform. parts

And takeaways, second then Just for cost. on David first, any heard? you've early feedback that

in lower the half You talked But is about earlier you the of the announced now this month know year. I that first profitability available. platform

just I'm level throughout heading see higher the cost wondering won't into to why start that why year, level of abate the half the So maybe we cost first QX?

kind they're And positive. is think quite I linked. feedback is And mean Yes. of I streaming what from some by early that that

are about. was and that and trained it have We at it. they're that have super using a been on promised partners bunch Others and on of our set excited it looked it feature it, and carries the

too differences platforms, et the point to performance cetera. between kind of early to But two

announced because that shut launch we we it, gets mean date of -- So day it, the and launched doesn't down. everything necessarily else

tell about what nicely dovetails into probably cost. to that David so And is going

Yes.

run So in like to two a migration you've you one -- full have is this got of platforms. challenges the

platform, works. to long like have writing customer have that it you a still you sure one as on As make

teams that got you've so have support to And that.

minimum on kinds it have that all You and on-prem lease both and cages center support costs costs, takes of platforms. to commitments spend data and

base. is And so a cost duplicative there

to scheduled unified the platform. in second deprecate and are early to go QX, one We platform,

cost half so why see the And that's you'll latter of year. the in decreases significant

elements utilize platform volume, certain high-value the are our a is past bit little -- our heavier that cloud lower did in unified of elements there of component other platform. the value lower on than we The some our of

you're when optimization occurs time over there's unit that so And also a cost the using cloud.

continue unit over costs see we'll coming the year. in And reductions course of so this benefits to and

year. to of And of reductions cost latter the in will some so that the those add half

Dan comes Company. Kurnos question Benchmark Our next from The with

you birthing few put panicked marketplace, get a on or as couple desperate first, awaited whether organic SSD, just a a or be do tech if of Great. how it the calls? might probably just job wonder sort differentiated long products. finally of from done death guys do the looking obviously, it, we might better-than-expected I a have you the, in Michael, not sort you of And get be if you of pickup holes? standpoint of filling at phone But

step We fully that brought dollar, advantage platforms guys of Internationally, of given still disruption of. a as guys you of in area own then someone kind hear continue up, an there lot from there's talk it And you distortion, could to it more now. David out checks about that our opportunity. and have unified the take

thinking how so about is curious understanding that you're everywhere messy I'm the kind broader right of just marketplace, And macro super now? the attacking

Yes.

So or it supply see relates open accelerating happen typically this continuing kind you first, the in business. it is auction where optimization, speaking, of as path to

as and bid you what receiving a so bids doesn't DSPs there's platform more other to kind than of in it's fear Magnite really require going advantage from that platforms because anything the from. and to dislocation And it. spend, up see making sure buy And take of

on cost, own, it Magnite use whole And my to publisher doing run The part. header." my see second and piece it me requires piece Boy, own. of lot " this engineers of it work is on on man, my the for I this saying, can a I've modest a technology been you help to And my two

you their they're deals of that give winner-take-most SSP. then they're where see relationship that really kind the from so partners, SSP And this where start wave They'll getting back business. a but to SSP use kind less to second technology they'll of choosing

custom We software great We've talked a that. is them. through Disney example. built about

why to products the given of and publishers able start positioned, brilliantly we that have, really company, be we're you when think it that is FOX "Man, example the can size scale lean run of have and said, was in a to the smart this I piece it help to think tools the that. How the I myself. of me?" we and did good to start

umbrella all So we're value certainly SSP undifferentiated to that, under poised that's an see bring going I to and SSP of the more not well take an that to more think this of a of you're just of and And advantage publisher. a that. can falls reawakening just that

on elaborate you're Dan, the I don't that question. Unified answer bit? a want little wrong the wonder, to relates I about. could it I I you As think platform, know asking if to what

answer can Well, you like, question you Michael. the

try of I margin roads aggressive mean in CTV international. have made from figure way been our attack think, have I DV+, obviously, good a because right checks kind the like you sort international But can to opportunities particular. now just markets that more get super kind distorted been advancement to want in get of trying some in we've I really you've I to certainly there out Europe, sense but either the market. some of out in And in to the or and the heard

I'd love the are hear you So across that to just what business? of more unified front guys now kind have a you doing

We No. point for take had little SpringServe, Because a the And guys." SpotX, exposure, really don't for like our company, a Europe. was to they And like, of German we instance, you businesses German need recall, got good it's market. kind tools to Europe, -- no RTL. by own Yes. some because if were in-house the with it you owned media along in of "Hey,

They like resources. well, little just that their focus on given was Telaria as really didn't And international. a bit

plus Magnite so never that has SpotX, that the SpringServe, you're before. that it that had, a innovation features plus really at existed that brand-new applied the Magnite for create And Telaria now opportunities features, the we've does some under one umbrella, through all all platform

do less. we're that to definitely what more, wanting in-house lean taking not finding of technology sunsetting. partners, the same think I is to Because that is lines, kind the of trend it whole like SSP, publishers publisher And era is on and an

So economies, weakness the of strength dollar and right. very markets it's of probably opportunities. Notwithstanding just to huge the about uncertain kind delay the pretty excited the given think are We're tough there. given the you going right the local they're times any now of I acceleration

Dan, And maybe question And maybe I there in Yes. be is international there the M&A answer would is, your no. opportunities. embedded

the So need. assets we have we

organic. have would We that and the to want, be we international growth expect team we international

Matt comes Swanson Capital question Markets. with next RBC Our from

thanks. Yes,

think DV+ I and quarterly the TV off I'll leave question bandwagon join my here.

partnerships ramp? kind kind think more And have heading just to help we X into about us how should we It should relationships announcements. indirect like quarter, direct benefit? the how of both and these seems Can expect the of So every think or about XXXX? you you X

question. great Matt, Yes,

like of And of we is of describe think to I really is good I GroupM jog partnerships kind think a example and that. kind these walk run. and

I quarters think time. X, first X maybe GroupM we the talked about for ago

them opportunity with right? evolution It's value to and turning the organization clients sales and a of why agreeing GroupM partnership a then to Magnite, socializing It's that like their cycle. premium buy a it's the And socializing on through to technology a and in GroupM? marketplace partner concept the the the then process, throughout

those and control in the control a control in lot are And in our some aren't. It's the that publishers' at case. of Magnite, agencies or

news good as that that a off things trickle become a drumbeat start So of you I meaningful. hear think and is these the

than quicker just kind others more play. customization. Others plug and some of Some because pay, require are

there's drumbeat, combination take power really by to market of this beats to being it differentiated right? is really kind gain as it's in you So share. it. ramp to a that think it case SpringServe a the But it I And super Streaming of of us -- not the case. points helping think product got with I Magnite having And

of like to? that online? And in or for of more of there's blended the into Maybe XXXX to an anything directionally pace we transition expectation kind take think rate it CTV terms as doesn't. biddable? helpful. with kind if kind But has about look you're can around as in the the just about any that then And do this in comes seeing XXXX, momentum out that talk maybe XXXX heading and of you of if market concept we around partners inventory CTV That's increase

of draw find Yes, kind needed But CTV broadcasters, kind about the et embellished a there's little been talk inventory the is services, when plus which in of of very that trends hard you're the like going the record categories going nature cetera. great the given generalizations record, to I question. of a just biddable These the marketplace. premium think to are a to upfront little into

going But able to demanded, foray the in buyers to for have bid dollar dictated I amount lot now, to marketplace, time some going every as is buyers. it. bring and record quite find further go you're be data they openly and The this opportunity think to to on a by the a the --

think I cloud has spread of that that, given concept auction well question the it. see the into who done just of so has so the that no that And buyer coming incredibly with, invite-only this you're to the just going

in the inventory quite CPMs in and service in biddable of quite a fast also We're QX market. than market different are seeing CPMs that OEM perhaps were at bit the

sure versus by take So we of economy. partner It's tough yes, a probably does to that value bode for this well technology the biddable conducting for coming. is ad being auction amount because publisher because contribute coming of process the to the rates of an faster And just presold it deals

comes question from Thornton next with Our Matt Truist.

if Maybe two could. questions, I

couple your should that the to market the a a But that of share side. one, to Just I'm a of on do think and Yahoo! you there that recent How SSP. would they And platforms, meaningful shutting how curious think would how of I'm I some Michael, some in larger supply like be share. and probably 'XX? applies to Magnite, I absorb alluded assume its curious thoughts kind position events. assume about was had that absorbed? share you you market -- gets

partner I But thoughts comes the that And as recently for I would primary that third-party I'm your well well. secondly, there to SpotX that as talked fruition. then to believe curious SpotX again, Roku was demand. DSP about would bode SSP assume opening up

press Yes. think the in kind so been Matt, yes, of trade press. I it's quoted --

-- of under simple -- Yahoo!'s was Yahoo! of of O&O. the So most majority exchange inventory majority Yahoo!

or And to to monetize so might out whatever be. assume a the way figure case that they're head going that, probably

gain us inventory. is that opportunity that to still an to So access for

slightly a fashion, to through opposed that they a cleaner as couple the exchanges they've of kind of acquisitions the through hats in that had right, multiple Probably done.

net So probably a I guy. good think that's

had. As as we've up had most of they the platform, far picking that already the that on inventory

to Generally So publisher to flow differentiated shutting only what that another SSPs, publisher is and to you new necessarily kind speaking, just not wins for path flow down to Magnite. dollars come going you're and using remaining of someone of now Yahoo! more kind Magnite. going they're was is of through use as that particularly publisher, get DSP because is the the

related think I had about the second that's And was it. way to... think the So question you maybe to

Roku.

was Roku. Yes. That on

Yes. with Bingo. partnership Yes. them. Still deep have a

as But partnership suffice nature a expanding it's early a talk that about think them well. deep to relationship. little us say, for I to the that's with of the

Shweta comes ISI. Evercore Our next from Khajuria question with

offerings Disney. This to Peterson scale question and programmatic XX% programmatic on is Disney Shweta. on by be Ian here, Quick rapidly focusing to their 'XX. continues XX% expects for to

how comes a And really just term? highlight And lastly, here? a maybe you Magnite's Magnite? for recently you us shift help AVOD this you accelerated Disney? for quantify of similar is Or and anticipate towards trajectory Can maybe as to in can other near programmatic impact can just into streaming here the platform play proposition And a in services? just Disney you AVOD do value the this the tie launched outlier services follow

Ian. Sure,

clear it moves The primarily Disney. we've them by programmatic helps the technology of the facilitate it is think -- been with I running belief that that partner environment. take are that With Disney, working buys as it, in a So auction as increased we biddable economics sold pretty rates. more relates a are us piece to terms to that of

that, itself so over think time. And out I that plays

has They're I programmatic. They an they're I the global, Hulu. of outlier And being stretch. And there's the up is is at question that years emulate. going having X, biddable inventory, And Disney this just think advanced. have more XX guaranteed had and right? Hulu They're doing they also by don't learnings have X, to they going more any upfront for no that's pricing. model inventory think of against what think that efficacy I the And traditionally inventory Hulu shown that,

at, to things I carefully. is really kind they that and that looking at And of at before is Streaming, a think good were be Telaria about I not Telaria against that outlier of used when it to chocolate it and good is people are Telaria there both so SpotX that very, SpotX wasn't that will And simple compete In think that, was very things that as lagged. think Magnite mean, and an SpotX way all of part vanilla. at Magnite,

streaming those specialty on access having taking other the And platform about the the the up one. like taking streaming putting some live things you and an to along that applying then with ad for platform best you're have talked in it, with both learnings now clients platforms, for So our there, best and wind we asked them stuff to our of of sports, out particularly server. that

and put together. And think, So and wonderful whenever for they merged that of position it we ad either expand and existing than one fubo that opportunity solidify there's there a different opportunities to decides servers the type like were did. anyone become change in SSPs I question, will platforms were us are no a of before out

This question-and-answer conference any back closing like concludes turn the would our over Michael remarks. to I session. Barrett for to

you, Thank Sarah.

judiciously manage and generate free managing actions healthy discretionary evidenced For cash XXXX, pause expenses. with year we and we've platform to as to revenue in new grow headcount, continue taken by expect hiring earlier consolidation, we on flow expenses, the

keeping on poised capitalize the growth the business to accelerating also as improves. are market doing We this while

leadership and years continue improving independent in ad position drive growth market in CTV in should to supported the ahead. market share DV+ gains Our the

to yet CTV CTV, ad-supported which earliest market programmatic We partners. are just of ad scale many have launched of still growth businesses, to as will drive years for largest days just participants in and the for come, many the the especially

challenging our I team consolidation navigating would successful and their conditions. hard thank focus Magnite comprehensive platform like all great and customer while migrations, a for work to through market

our look and to and many you investor support you continued for upcoming QX call joining analysts for Thank at with forward results events. to of your speaking today. our We our investors

meetings investor QX virtual Cannonball post will tomorrow. host

New X. in We Truist March will SIG in on X York the York the be on attending March Conference and New conference

in -- March on Denver and with in participating be and evening, XX. RBC March also great X, sorry, March and a and Montreal thank and Montreal, Toronto meetings Denver X and benchmark with Have in will Benchmark We Toronto, on with you. on I'm X in X in

today's The presentation. you for conference Thank attending concluded. has now

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